Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Ratios
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mrjonbain.
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- June 12, 2025 at 10:07 am #717897
Which four of the following statements about accounting ratios are correct?
1. They are useful when comparing a business results from one year to the next
2. Gearing will indicate how risky a business is
3. Interest cover will give an investor information about whether or not a dividend will be paid
4. If there is an increase in any calculated accounting ratio, it is seen as favourable
5. They help the user of financial information to focus attention on significant issues
6. They can provide information about the profitability, liquidity, efficiency and position of the company
7.Ratios can be affected by a business choice of accounting policies
8.They provide all the information needed for interpreting company accountsSir , what is your view on this ,as to me five statements seems to be correct (1,2,5,6,7)
June 12, 2025 at 10:54 am #717899If you want to ask the tutor something directly, please use the ask the tutor forum.
June 12, 2025 at 10:55 am #717900June 12, 2025 at 11:18 am #717901Ok , Thanks!
June 12, 2025 at 11:43 am #717904You are welcome.
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